Spender/Debtor
Understand The Characteristics Of A Spender Or A Debtor
When dealing with clients, there are certain traits that we tend to see.?Why is it that some people have an easier time grasping financial concepts than others??More importantly, income does not necessarily guarantee financial success and?freedom. We have all heard stories of families earning well over six figures yet can’t seem to keep their financial affairs in order and some cases,?filing for bankruptcy. ?
Regardless of their income, some people and families would be considered “spenders/debtors.” They take on debt through credit cards or other sources to fund their purchases, and they then spend their time paying that debt down to zero.?When it’s time to make the next purchase, they take on debt again and continue the cycle. This is referred to as living below the zero line?or?hamster?wheel finance.?
Banks?fuel this by giving?you a credit card; however, they don’t provide a manual on how to use it; therefore, people end up racking up credit card debts. The monthly credit card?statements?that?the?banks?provide show?(in bold)?the minimum?amount you’re?required to pay towards your debt,?giving?you a false sense of how much you owe.?People in this cycle feel like they’re?on a hamster wheel; they borrow money and pay the minimum but never get ahead. ?
领英推荐
The?cycle of taking on debt for purchases, paying it down, and continuing again, makes it very difficult to create a safety net, let alone personal wealth. Many spenders/debtors will argue that they are using Other People’s Money?(OPM).?Although it is true that they are using OPM, they are using it to satisfy their current lifestyle. Generally, they look at their monthly?cash flow?and try to?work in how they can afford the?purchase that they desire. ?
THERE ARE PEOPLE AND FAMILIES, REGARDLESS OF THEIR INCOME, THAT WOULD BE CONSIDERED SPENDERS/DEBTORS
Don’t fret if you haven’t started saving yet?or feel you are too far?behind.?Queen’s Bridge?Financial Strategy?can?help you?come up with strategies to?get you on track.?We help you find the money you are losing?unknowingly?and?unnecessarily; believe us, it’s there, then we put that money to work for you. It all starts with a?15-minute?discussion. 15-minutes could change your life.?